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1. Bulls are getting tired, and they are experiencing some resistance for higher prices. This could be because there are not enough buyers or because the sellers (bears) are stronger. |
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3. Bulls overcome old resistance, which becomes support for the bulls. |
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4. Bulls advance to new high, before encountering new resistance, or overextending themselves. |
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5. Bulls retreat to a new support level, which is at or above points 1, 2, and 3. |
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6. Bulls encounter new resistance, where there was none previously; there are not enough bulls to push prices higher. |
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7. Bulls retreat again and obtain no support from other bulls that previously found support at point 5. The bulls may be in trouble. |
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8. Bulls retreat even lower, and still are not obtaining any support. Since this was a former resistance level that was overcome at point 3, there should be some support here. The bulls are definitely in trouble. |
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9. Bulls are in full-scale retreat, and find no support. The bulls have probably lost the upper hand. |
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10. At last the bulls find some support. In all probability the reason they do is that the bears got tired, or the bears became overextended. |
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11. Bulls manage to rally into new resistance, which was their former support. Without a doubt the continuity of bullish thought has been lost. |
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1. Bears wake up, and make this a support level. |
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2. Bears advance prices lower. Encountering resistance for lower prices, they could also be overextended. |
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3. Bears are unable to prevent the bulls from negating their former support level at point 1. The bears may be in trouble. |
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4. Bears find support among themselves to prevent higher prices, or the bulls are too few or tired to push higher. |
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5. Bears are able to push prices lower, encountering resistance by the bulls. |
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6. Bears find new support, lower than the support level at point 4. The bears are starting to assert their strength. |
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